Thoughts on the senate healthcare bill:
Subsidies, grants, tax credits, waivers. All are in the senate bill. All four mean the taxpayer continues to be on the hook for others. This should never be. But in the world of socialist governments, the taxpayer is always on the hook.
Unfortunately, while the bill is a definite improvement on Obamacare, it continues to be a twisted jigsaw puzzle with a bunch of pieces missing. Expiration dates, add-ons, take-offs, do this and you get that. Don’t do this and you don’t get that. Where is the market forces in all this? Why can’t we get to the point where health insurance is an ice cream store. You walk in. You pick your flavor and you pay for it. Why? Because government wants to continue to tell you what you have to have.
The good news in this bill is it takes away the taxes Obama foisted upon the public. Of course, the socialists will now tell you it is a tax cut for the rich. They never change. The good news is that the mandates are gone but there is still a lot more to be desired. I guess you can’t have it all when you have such a blob of a system. Just do not believe anyone telling you the outcome of this. THEY DON’T KNOW! The fact is the system, which basically government has taken over, is screwed. Time will tell.
We do know one thing. One of the architects of Obamacare said in order to fix Obamacare…just PENALIZE people more in order to FORCE them into buying something they don’t want. Now that is economics for you.
Futures flattish. Mixed bag yesterday. Again, BIOTECHS with the big breakout of range…and that has not stopped as the big money flows to it. That is helping in that the SEMIS look like the opposite right now. SEMIS are still above the 50 day but distribution in many names. To be watched.
Barack Obama said this:
“The Senate bill, unveiled today, is not a health care bill. It’s a massive transfer of wealth from middle-class and poor families to the richest people in America”
Gary K says this:
“You raised taxes on the middle class and poor in your bill. All this is doing is rolling back YOUR transfer of wealth!”
Barack Obama said this:
” It hands enormous tax cuts to the rich and to the drug and insurance industries, paid for by cutting health care for everybody else!”
“All it does is roll back YOUR tax hikes…and you started the subsidy brigade handing billions to the insurance industry!”
Barack Obama said this:
“Those with private insurance will experience higher premiums and higher deductibles, with lower tax credits to help working families cover the costs, even as their plans might no longer cover pregnancy, mental health care, or expensive prescriptions.”
Gary K says this:
“I don’t know even where to start. Out of respect to the presidency, I cannot say this man is delusional or can I? Obamacare is the bill that has caused skyrocketing premiums and deductibles but the ex-president has the nerve to predict what will happen with someone else’s legislation? Wow!
This senate bill will be carved up like a smoked sturgeon. There is no way it will pass in this form. We are a long way away from the final final. At first blush, looks like it continues to be one gigantic entitlement. Then again, whenever government sinks its teeth into something, it stays forever.
Looks like American not taking kindly!
American Airlines Group Inc. (American Airlines or the Company) recently received an unsolicited notice from Qatar Airways indicating Qatar Airways’ intention to make a significant investment in American Airlines. As a publicly traded company, American Airlines’ common stock is available for purchase on the Nasdaq Stock Market, and Qatar Airways has indicated that its purchase would be made on the open market.
Consistent with the notice, Qatar Airways has also submitted a filing under the Hart-Scott-Rodino Act (HSR Act) with respect to its potential investment in American Airlines common stock. A filing under the HSR Act is required for an acquisition by Qatar Airways of more than approximately $81 million of American Airlines common stock, and is subject to review by the Antitrust Division of the United States Department of Justice in accordance with the HSR Act. The notice advised that Qatar Airways intends to purchase at least $808 million and, in a conversation between the CEOs of the two companies initiated by the Qatar Airways CEO, Qatar Airways indicated that it has an interest in acquiring approximately a ten percent stake. American Airlines will respond in due course with the appropriate filings required under the HSR Act.
The Company’s Certificate of Incorporation prohibits anyone from acquiring 4.75% or more of the Company’s outstanding stock without advance approval from the Board following a written request in accordance with the procedures set forth therein. The Board has not received any such request. The Company also notes that there are foreign ownership laws that limit the total percentage of foreign voting interest to 24.9%.
The proposed investment by Qatar Airways was not solicited by American Airlines and would in no way change the Company’s Board composition, governance, management or strategic direction. It also does not alter American Airlines’ conviction on the need to enforce the Open Skies agreements with the United Arab Emirates and the nation of Qatar and ensure fair competition with Gulf carriers, including Qatar Airways.
American Airlines continues to believe that the President and his administration will stand up to foreign governments to end massive carrier subsidies that threaten the U.S. aviation industry and that threaten American jobs.
Futures flattish with the NDX a little better.
ORCL nice gap for a mega-cap. Earnings not that great but better than expected.
Two of our favorite China patterns setting up in flag patterns hit to the downside on news out of China…SINA, WB. Something about regulators stopping them from doing certain things…
Our thought process that BIOTECH was setting up to break out…broke out…and with a fervor . Dang. If you look at the IBB, we are talking an almost 18 month breakout above the $300 level. Little did we know how strong the move would be. It is up again this morning…almost 6% in days for an ETF. It tells you juices are still flowing in beta. Of course, a break back below negates but as of this second, the big money is all over BIOTECHS and should be looked at on pullbacks towards support.
Yesterday was weird. Noticed chemicals, machinery, industrials and the like rolling over but money came right back into the mega and large-cap tech/internet. Very simply, the 50 day average looks like it is holding this area and now this area looks poised to rally up into the highs of the ugly 6/9 day. Of course, BIOTECH now helping. The A/D was terrible yesterday and even down on the NASDAQ with it up almost 50 points.
The tape is as split as they come. On radio yesterday, I read off the list of things to avoid and the list is long. We keep being asked about energy. Since 1/30, we have been telling you to avoid. No doubt, we will see bounces. We have seen a few. In fact, it is again oversold and can bounce but the main trend remains down…so careful. There will come a time when the bottom is put in. Let the bottom form.
Yesterday…yuck…we would be watching:
The SEMIS…more than half the names we follow now trade below resistance and showing not so thrilling patterns. The SOX remains above the 50 day. There is a direct correlation between the SEMIS and the market.
Friday, 6/9 continues to weigh on our mind…as we asked the question that day…”changing of the guard!”
BIOTECHS tried to break out of range yesterday but pulled back in when the market was hit. BIOTECHS look like they can outperform here but if market gets hit more, not si sure. If markets just sit, think the BIOTECHS can get going. $300 area needs to hold for the IBB.
Futures up a wee bit after being down an hour ago. Not sure what turned the tide but not a big move nonetheless.
FDX down about $2 on earnings. ADBE, RHT, KMX up decently. RHT up about 10%.
The Socialist party lost more elections last night. Unfortunately, the party continues to have their head in the sand as they think higher taxes, more regulations, more government, more government control and all that crap wins the day. It doesn’t!. It also doesn’t help that they are capitalists with their own money and their lives but socialists with everyone else’s money and their lives. They are so tone deaf that they put Hillary Clinton on a pedestal. This is a woman, along with her husband, used political influence through speeches and a foundation to make themselves over $100 million, call people who disagree with it deplorable…and expect good things to happen. What happened to all the sane people in the party? They are either gone or shut up. As far as the RepubliCONS, not so sure it is much better. They have about another year to prove me wrong.